Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Further review and investigation of the company's books revealed the following omissions and errors which were not corrected during the year of errors: 2018 2019
Further review and investigation of the company's books revealed the following omissions and errors which were not corrected during the year of errors: 2018 2019 2020 2021 Deferred expense 14,400 11,200 8,000 9.600 Deferred income 6.400 4,800 Accrued expense 3,200 1,200 1,600 800 Accrued income 2,000 2.400 Ending inventory - Overstated 112,000 128,000 Ending inventory - Understated 96,000 144,000 No dividends were declared during the years 2018 to 2021 and no adjustments were made to retained earnings. The company's reported the following net income: Year 2018 2019 2020 2021 Net Income P120,000 P88,000 P104,000 P120,000 NOTE: Disregard tax implications What is the correct net income/(loss) in 2021
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started